Life insurance policies offer more than a financial cushion to you and your dependents from the uncertainties of life.
Insurance policies like ULIPs allow you to make partial withdrawals once the mandatory 5-year lock-in period is over.
However, you should be careful while making withdrawals to make sure that the policy doesn’t lapse.
Can I take out money from all life insurance policies?
Well, if you have an endowment or money back policy and have paid premiums for at least 3 years, your policy acquires a surrender value.
You can pledge your endowment or money back policy as a collateral for a loan.
You need to find out from your insurer about the various terms and conditions attached while pledging your them for a loan.
Can I use a term insurance policy for a loan?
No, a term insurance policy can’t be used for a loan.
Term policies are pure protection plans which pay a lump sum in case of death of the policyholder during the policy term.
They don’t have maturity benefits and a surrender value. Hence, you can’t use a term insurance policy for availing a loan.
Disclaimer - *Conditions apply. This product is offered under the Group Insurance scheme wherein Bajaj Finance Limited is the Master policyholder. The insurance coverage is provided by our partner Insurance Company. Bajaj Finance Limited does not underwrite the risk. IRDAI Corporate Agency Registration Number CA0101. The above mentioned benefits and premium amount are subject to various factors such as age of insured, lifestyle habits, health, etc (if applicable). BFL does NOT hold any responsibility for the issuance, quality, serviceability, maintenance and any claims post sale. This product provides insurance coverage. Purchase of this product is purely voluntary in nature. BFL does not compel any of its customers to mandatorily purchase any third party products.”
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